As of January 1, 2026, large-scale amendments to the tax legislation of the Republic of Kazakhstan concerning Value-Added Tax (VAT) registration will come into force. These innovations, announced by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan at a press conference on October 30, 2025, will impact both existing and future taxpayers.
Key Amendments to VAT Registration
As noted by the Head of the VAT Administration Department, Äzımshaıyq Edil, the reform is aimed at streamlining tax administration and enhancing transparency. Starting in 2026, registration will be conducted in three clearly defined forms:
Voluntary — at the company's initiative, prior to reaching the established annual turnover threshold.
Mandatory — for taxpayers under the general tax regime whose annual turnover exceeds 10,000 MCI (approximately KZT 43 million).
Conditional — mandatory for foreign companies supplying electronic services or conducting online sales to Kazakhstani consumers.
Entities Exempt from VAT Registration
The new Tax Code explicitly defines the categories of persons not subject to registration as VAT taxpayers. These include:
State institutions
Branch offices
Individuals engaged in private practice (lawyers, notaries, etc.)
Individuals not registered as Individual Entrepreneurs (IEs)
Taxpayers applying Special Tax Regimes (STR)
It is important to note that the maximum turnover threshold for applying the STR under the simplified declaration has been increased to 600,000 MCI (KZT 2.6 billion), allowing most small businesses to operate without VAT liabilities.
Remain on STR or Transition to VAT
As of 2026, it will be impermissible to combine a Special Tax Regime with the status of a VAT taxpayer. This is one of the most significant changes, requiring a strategic decision to be made before the end of 2025.
If you wish to retain your status as a VAT taxpayer, you must switch to the general tax regime effective January 1, 2026, and notify the tax authorities by March 1, 2026.
If you plan to remain on the simplified regime, we recommend that you timely file an application for VAT deregistration before the end of 2025 and submit a final VAT return (form 300.00) for the fourth quarter of 2025 no later than February 16, 2026.
New Control Mechanisms and Consequences of Non-Compliance
The tax authorities are enhancing the monitoring of compliance with registration rules. Starting in 2026:
Upon detection of violations, a notification will be issued to the taxpayer, granting a 30-working day period for remediation.
Forced VAT deregistration will be abolished. Instead, for violations (e.g., non-compliance with the legal address requirement), the issuance of electronic invoices (E-invoices) will be suspended until the violations are fully rectified.
All applications for registration and deregistration can be filed electronically via the "Taxpayer's Office" ("Кабинет налогоплательщика") or the eGov.kz portal.
The forthcoming changes are systemic and require a measured assessment of their implications for your business. An incorrect choice of regime or failure to comply with deadlines may lead to financial losses and administrative barriers.
Contact our experts to safeguard your business and make the right choice under the new rules.